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The Back Page - Apple Death Knell #40, Enderle vs. Chaffin Finale

by - May 14th, 2004

You knew it was coming: Rob Enderle has let ring his 5th Apple Death Knell in just the last few years. Today's entry in the Apple Death Knell Counter comes in part 5 in the heads up debate between Mr. Enderle and myself in MacNewsWorld's Death Match. This cements Mr. Enderle's lead in the Apple Death Knell Counter; with1/8 of the entries we have chronicled so far, no one else comes even close. As I noted in the ADKC itself, however, there are additional Death Knells from even the last few months that I have not yet entered, but I am betting Mr. Enderle maintains his lead for some time to come.

In today's installment of the Death Match, the last such installment unless we do a new question, we were asked "To what degree is Apple moving in the right direction, and to what degree should it switch its course?" A brief quote from our responses:

Me: There are only two pieces of the puzzle that are missing, in my never-humble opinion, and that is Apple's pricing and its (lack of) marketing for the Mac

[...]

Understanding that the laws of economics would never allow Apple to compete head to head with Dell, Apple has chosen to compete on style, lifestyle and quality. By doing so, Apple has managed to create a market where it can charge enough to properly fund research and development, which itself has led to such things as the iTunes Music Store and iPod.

Note that toaster-maker Dell has had to go the rebranding route to compete in these markets that Apple effectively invented, despite the fact that Dell is the king-daddy PC maker. Apple's industry-high margins are what have allowed this to happen, and I am a strong believer that the high-margin strategy is an absolute requirement for a sustainable Apple.

[...]

However, there's a glaring hole in Apple's approach, and that is in the entry-level market -- the market from which new users typically come.

Rob Enderle: With Panther, Apple finally began to make its legacy hardware business more compatible with Windows standards. With iTunes and the iPod, it embraced the massive Windows installed base. Had it not done so, the company probably would not have been profitable for much of the last year.

Its software has gotten more and more competitive with products from companies like Adobe as it evolves from being less platform-centric and more customer-centric. Meanwhile, its message is less about Mac versus Windows, and more about what you can do with the software and accessories that it sells.

In short, Apple slowly is becoming less and less of a Mac OS company and more and more a firm that will go where its customers want. It simply isn't moving fast enough.

Now, that's the portion of Mr. Enderle's response that I focused on in my rebuttal, which was published today as "Mac Death Match, Round Six: Chaffin vs. Enderle."

The rebuttals are our opportunity to respond to each other, and I have heretofore used this column space to rebut Mr. Enderle's rebuttal. No need for that this week as the only thing really needing rebutting is Mr. Enderle's assertion that "Apple doesn't play in this [entry-level] segment much at all, and isn't even close to the $600-$800 sweet spot.

Bryan's Rebuttal: eMac: US$799

That was easy.

Ironically, however, I am also saying that Apple doesn't properly address the low-expectations market, so my rebuttal is more like a correction, than a rebuttal. Go figure.

In any event, what about this new Apple Death Knell? In his response to MacNewsWorld's question, Mr. Enderle includes the following gem:

Apple has about 24 months to get its act together and position itself for the post-Longhorn world of Linux and Windows. If it doesn't offer solutions that will play on those platforms the way iTunes currently does on Windows, it will probably become a footnote by the end of the decade.

Pulease! Hear that long low dooooooonnnnnnnnnnnggggggggg in the background? That's simply YAADK (Yet Another Apple Death Knell). Pay no heed.

If you ignore my advice, though, you can read my full response to this nonsense in part six of this series at MacNewsWorld, Mac Death Match, Round Six: Chaffin vs. Enderle.


began using Apple computers in 1983 in a high school BASIC programming class. He started using Macs in 1990 when the Kinko's guy taught him how to use Aldus PageMaker, finally buying a Power Computing Power 100 in 1995. Today, Bryan is the Editor of The Mac Observer, and has contributed to the print versions of MacAddict and MacFormat (UK).

You can send your comments directly to him, or you can also post your comments below.

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Show: Subjects Only | Full Comments
Close Name:mahuti -   TMO Staff Posts: 370 Joined: 09 Jan 2003
Subject: 24 Months?

I think even from MS's opinion the *POST* longhorn world will be WELL over 24 months.

View Name:Guest
Subject: Longhorn?
View Name:Guest
Subject: Does Apple Own Rights to Translucency?
View Name:Guest
Subject: WWDC
View Name:Guest
Subject: cool effects
View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Can't Deny Apple Is Dying 1% Market Share At A Time
View Name:Guest
Subject: RC idiot
View Name:Guest
Subject: And Market Share continues to drop.
View Name:Guest
Subject: Marketshare, Longhorn and 24 months
View Name:Guest
Subject: Linux does graphics
View Name:Guest
Subject: Also Linux does Pixar
View Name:Guest
Subject:
View Name:Guest
Subject: "by the end of the decade"
View Name:Guest
Subject: Customers and Speed
View Name:Guest
Subject: Titanic
Close Name:Photodan -   TMO Staff Posts: 3103 Joined: 11 Jun 2001
Subject:

Quote
Guest wrote:
... but I ask you is the several hundred thousand G5s that have been sold in the last 7 months enough to keep the IBM Fishkill plant running? Is IBM getting any return on their investment on sales of the 970?

What do you think?


I think IBM makes more than the G5 at the Fishkill plant. Keep in mind that the entire console game market is now in IBM's hip pocket. (the Gamecube uses a PowerPC, the next playstation will use The Cell and now even Xbox2 will even be using a G5 derivative)

Also, don't forget that IBM uses the Power4 (what the G5 is based on) and soon Power5 in some of its own machines. IBM isn't sacrificing anything in making the G5 chips. It's safe to say they are getting their money's worth.

-Dan

Close Name:Bryan -   TMO Staff Posts: 7330 Joined: 11 Jun 2001
Subject:

Quote
Photodan wrote:
[... a bunch of things that were right on target.]

-Dan


Word.

View Name:Guest
Subject: To RC repliers
Close Name:Bryan -   TMO Staff Posts: 7330 Joined: 11 Jun 2001
Subject:

That's a good rule, Guest.

View Name:Guest
Subject:
View Name:Guest
Subject: Apple won't die it will fade away
Close Name:Bryan -   TMO Staff Posts: 7330 Joined: 11 Jun 2001
Subject:

Just wanted to make a few corrections, Guest/Eric, and to address your thoughts.

Apple never had its own processor, having used processors by, first, Motorola, and then Motorola and IBM, which is the case today.

Apple still uses its own motherboards.

Mac OS X is built on the Mach kernel (under the name of Darwin) and a BSD layer, but is chalk full of Apple-proprietary technologies. All of the things that make the Mac experience are proprietary Apple OS technologies. Apple also owns a crap load of patents that the company can use to block any commercial attempts to copy the OS.

While Darwin runs on x86, most of those many proprietary technologies do not. Apple could, of course, port most, if not all, of them to x86, but they are currently built to take advantage of the strengths of the PowerPC platform, including AltiVec.

As for the rest of your post, you may want to read all three of my pieces in this series as I dealt with most of your arguments there. The biggest one is explaining why the Mac experience could never be brought to an open-hardware market.

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